The Liberal Party powerbroker who dragged Catholic schools into corruption inquiry
NSW Catholic Schools chief executive Dallas McInerney has resigned from the state’s powerful curriculum and assessment board after the anti-corruption watchdog sensationally revealed it was investigating whether he authorized illegal political donations to recruit Liberal Party members.
McInerney, who previously served in the Liberal Party’s state leadership and is one of federal leader Angus Taylor’s closest allies, will be the most senior Liberal to take part in the investigation focusing on illegal Sydney developer Jean Nassif and his links to parties and councils.
McInerney stood down from the NSW Education Standards Authority board on Wednesday after the Independent Commission Against Corruption outlined allegations against him, including that he “arranged and approved” political donations from NSW Catholic Schools to recruit members for the party.
ICAC said the amounts were “undeclared and exceed applicable donation limits”.
NSW Catholic Schools did not respond to questions about whether McInerney would remain in his role.
For years McInerney controlled the right wing of the NSW Liberals and was touted as a Liberal candidate to replace Jim Molan in the Senate. “These are the commission’s business,” a spokesman for the federal opposition leader told Taylor’s office in response to questions.
McInerney has a long history with the Liberals; This included his conviction for harassing a political rival ahead of state elections in March 1995.
While McInerney was working as an employee of Liberal MP Chris Downy, who held the former state seat of Sutherland, McInerney, then 22, used his campaign office phone to harass and abuse a pizza shop owner who had Labor Party posters in his window.
He was found guilty of using the telephone service to harass the owner, whom he called up to 20 times a day for four weeks to harass him over his support for the Labor Party. McInerney was fined and placed on a two-year good behavior bond.
A long-awaited corruption investigation has thrust NSW Catholic Schools, the governing body of NSW diocesan Catholic schools, into the unexpected spotlight. The organization was formed in 2016 in response to “the bishops’ express desire for more appropriate, efficient and transparent management of Catholic schools in NSW”.
Jean-Claude Perrottet, media manager for NSW Catholic Schools, is himself facing allegations that he “solicited or accepted political donations, including from prohibited donors”. Jean-Claude’s older brother Charles is also under investigation by the anti-corruption watchdog.
John Perrottet, father of Jean-Claude, Charles and former prime minister Dominic Perrottet, sits on the board of NSW Catholic Schools.
Neither John nor Dominic Perrottet is accused of any crime.
Facing the same allegations as McInerney is NSW Catholic Schools lobbyist Jeremy Greenwood. Greenwood, who previously worked for National Party Leader Matt Canavan, is also a lobbyist for the Catholic Archdiocese of Sydney.
Greenwood and former business partner Christian Ellis, who also faces branch hoarding allegations to be heard by the ICAC, were former lobbyists for disgraced property developer Jean Nassif at the center of the investigation.
Former NSW Catholic Schools communications manager Robert Assaf also faces allegations that he solicited political donations, including from banned donors. He later became head of corporate affairs at Greyhound Racing NSW, which used the Greenwood firm as a lobbyist.
In 2019 McInerney and Charles Perrottet were among those elected to the NSW Liberal Party’s Local Government Oversight Committee. This gave them effective control over which candidates would run for local government.
Hills Shire councilors were replaced with new councilors in the 2021 local government election “through manipulation and abuse of the electoral process using the State Government and Local Government Oversight Committee”, according to an extensive anonymous dossier tabled in the NSW parliament.
At the center of allegations of reshuffling at Hills Shire council was illegal developer Nassif, who fled to Lebanon in December 2022.
ICAC’s investigation will investigate whether political donations were made by or on behalf of Nassif and Toplace Pty Ltd from prohibited donors in 2020 and 2023. Election Finance Act 2018 (NSW) and requested or accepted by Christian Ellis, Jeremy Greenwood and Charles Perrottet.
Prime Minister Chris Minns has called for the suspension of two Labor councilors involved in the investigation.
Strathfield Labor councilors Sharangan Maheswaran and Karen Pensabene were also alleged to have engaged in conduct towards Strathfield councilor Matthew Blackmore “involving the dishonest or partial discharge of their official functions and/or breach of public trust, including conduct which may involve blackmail and/or possible breaches of the Surveillance Devices Act 2007”.
In early 2023, the duo told then-mayor Blackmore that they had hired a private investigator who followed him for five months and secretly recorded his conversations.
Blackmore unexpectedly resigned as mayor of Strathfield in March 2023, blaming “suggestions” made to him by unnamed individuals. At the time, he said he “acted decisively” against their demands and reported the matter to the relevant authorities.
But the Liberal Party is not taking the same step, with a spokesman instead saying: “It would be inappropriate to comment on a current active ICAC investigation.”
Start your day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.
Alexandra Smith is a senior writer and former state political editor for The Sydney Morning Herald.Connect with: X or email.
